Certified Business Brokers
The Business Transfer Newsletter
January 2014
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Selling Texas Businesses

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Selling Texas Businesses Since 1974.


Our monthly newsletters provide information about buying or selling a business, current economic conditions, and highlight some of our newest business-for-sale listings. We are headquartered in Houston and have offices in Austin.


Read our Archives, "The best library of articles about how to sell your business." - The New York Times

CBB Newsletter Archives

Businesses For Sale

    Review All Listings                         Manufacturers For Sale 

    Wholesale / Distributors                 Service Businesses For Sale 

    Auto-Related Businesses                Child Care Centers For Sale   

                          Restaurants - Fast Food - Bars 



Featured Business Listing

* Featured Restaurant Listing 


Get Rid of Excess Inventory to Maximize Business Price


 Excess Inventory Hurts Business Value

When selling a business, maintaining proper inventory levels is essential to maximizing value.  Don't let poor inventory management drag down the value of your business. 

Inventory is an ever-renewing, moving, and perishing thing. The longer it hangs around, the less valuable it gets, and eventually dies as a viable product.  If it's not turning over fast enough, the inventory begins to stop-up cash flow and drain capital coffers. Inventory is a dollar-for-dollar part of the buying and selling process and buyers will make a close assessment of it prior to closing a deal.

So, when operating a business, the goal is to tie up as little cash as possible in inventory, while having enough inventory to meet ordinary business needs. And, when selling a business, prospective buyers looking at a business as a possible acquisition would rather see fully flexible cash, not less flexible inventory weighing profits down. Any free cash flow that can be found to help bottom line earnings when selling a business will be rewarded by a higher price when the business is sold.

Regarding the problem of excess inventory, there is a delicate balance where it begins to cost more to carry the inventory than it costs to not carry the inventory. Supporting unneeded inventory can decimate profitability and cash flow in a hurry. Not only does it tie up cash, there are day-in and day-out costs associated with that inventory as well. Whether it be the expense of financing that inventory, the costs of markdowns due to age and obsolescence, the incremental payroll costs of moving it around, or the hidden costs of not being able to merchandise more productive inventory in its place, it all adds up, and hits the bottom line.

The following costs associated with excess inventory affect profitability and impact business value:


Read Entire Article... 


Ask the Experts 

Question Ask The Experts 




What are some of the biggest mistakes business owners make when selling their companies?




This questions pops up a lot. This recent article is excellent and spells it out rather well.


Merger & Acquisition Mistakes to Avoid When Selling a Company


It's oft-repeated that mergers and acquisitions is a buyer's game. In most cases this is true because buyers doing much more buying of companies than sellers do selling. Private equity firms, corporate developers and even family offices tend to buy and sell many more times than individual sellers do. They're often more experienced, more prepared, more strategic and less prone to bring emotion into the process. There are specific ways in which business sellers tend toward hurting their prospects of getting a deal done. In many cases they not only do so at their peril but at the ultimate peril of the sustainability of their companies. Here are a few mistakes sellers make when considering a merger or acquisition of a business.


Unrealistic Expectations

Burning Bridges

Crossing the Bridge Twice

Keeping Emotions in Check

Read Entire Article That Explains in More Detail...



Texas Economic News


We watch economic and market conditions compared to the rest of the country because these factors affect business value. The following articles were all published since our last newsletter.


Finally! 2014 Margin Tax Law Change Eliminates Tax Cliff For Many Texas Small Businesses


Texas Ranks 2nd In Restaurant Industry Sales Volume, Employment & Employment Growth


Will Tax Incentives Make Austin The Video Game Capital Of The World?


Houston: More Than Just A Business Destination


Eating Out Is Big Business In Texas | Restaurant Sales Expected To Surpass California In 2014? 



Steel Company Buys Its First Houston Facility | Steel Is A Big In Houston, Companies Expanding  


Texas' Booming Economy Fuels Foodservice Demand 



3 Texas Metros Named In 2013's List Of Top Ten Cities For Job Growth
 - Austin #1, Dallas #7, Houston #8 


U.S. Treasury Report | Texas Lenders Approve $1B More In Small Business Loans 


Texas Will Be Bustling With Industrial Construction Activity In 2014 


Texas Dominates U.S. 2013 Top Master-Planned Communities List....(again) 


Luxury Homes Are One Of The Fastest Growing Segments Of The Texas Housing Market  


For The 9th Straight Year, Texas Is The Nation's Top State For Relocations  


Texas, California Embody Red-Blue Governance  


Economists project a strong 2014 for Texas  


Texas owns list of best performing cities in America  


Texas Treasury Has Extra $2.5 Billion AND the Sate's Rainy Day Fund will have $8 billion by end of 2015 


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